2nd April 2024
Outsourcing non-core competencies is very much in vogue with machine builders and OEMs at present. The decision to outsource, after breaking down the proposition, is by no means rocket science.
By embracing a strategic outsourcing approach, machine builders and OEMs can redirect their focus towards areas such as sales & marketing, research and development (R&D) and product innovation. These competencies have proven instrumental in creating a competitive edge for many manufacturers.
By shedding tasks that offer minimal value-add in terms of production and engineering processes, companies can concentrate on leveraging their core expertise to drive innovation, enhance returns on investment (ROI), and accelerate time-to-market. This shift lays a solid foundation for the outsourcing argument.
The success of an outsourcing partnership hinges on trust, which can only be achieved when the outsourcing partner consistently upholds high standards over extended periods. Additionally, demonstrating the ability to provide sought-after value throughout the design and engineering process is paramount.
In addition to an end-to-end production and engineering capability for module or assembly based, part or full machine build outsourcing, PP C&A supports value engineering, VA/VE activities, and DFMA to drive standardisation, modularity, and total cost.
That all starts with an exemplary engineering department, as Steinar Rúnarsson, Senior Electrical Engineer at Hedinn can attest to:
“PP C&A’s engineering team has offered exceptional assistance during the manufacturing preparation phase, finding routes to eliminate costs out of production, as well as reducing lead times by between 15% to 20%.”
The two companies have worked on over 13 projects together, a mixture of land and at sea solutions for using 100% of fish waste and offal to produce high quality protein meal and oil for animal feed.
DFMA is a cornerstone of effective outsourcing, offering avenues to streamline processes, minimise waste, and enhance value without compromising performance or quality.
A B Graphic International Ltd (ABG) is one such machine builder benefiting. The manufacturer of innovative print finishing equipment originally engaged PP C&A to design and manufacture the electrical back plates on its Digicon 3 digital print finishing machine.
However, during the design engineering discussions, it quickly became apparent that a more value-added design could be achieved, allowing for a modular, configurable, and pre-wired (Plug & Play) style solution with significant benefit.
During the build of the Digicon 3 machine, several engineering decisions made the difference, from a modular control system design, standardised power distribution, and 60% improvement in electrical fit-out time, to eliminating 700 days of production each year and increasing production capacity by over 50%.
Phil Robson, Operations Manager at ABG sees the partnership as business critical:
“Thanks to our commitment to outsourcing, we are now more efficient and have cut production and sales lead times significantly. Importantly, PP C&A has also given us the additional capacity that allows us to go after new business safe in the knowledge we can quickly ramp up production to cope with it.
“We have grown almost 50% over the course of our partnership, and this has been made possible thanks to the engineering, design, and production capability of PP C&A.”
Results like these rely heavily on effective collaboration, particularly between engineering departments; something that impressed Gary Robinson, Vice President of Sourcing at Winbro Group Technologies:
“Our EDM Generator module is assembled and built at PP Control & Automation to ensure we get the exact same repeatable quality in every unit.
“This machine really illustrates the strength of our relationship… it’s business critical. Together, we sat down and looked at the design for manufacture for the generator and, using the expertise of both firms, we were able to come up with an assembly process that is faster and more efficient.”
For Winbro, increased innovation and speed to market were two key factors towards embarking on an outsourcing partnership, as it prepared to launch the HSD351 system – the world’s most productive EDM drilling machine. But perhaps its the true value of collaboration that adds the most value.
The HSD351 system is the 10th model platform PP C&A has worked on since entering the supply chain of Winbro Group Technologies.
Each machine tool has seen a different level of complexity, but every time joined-up thinking and collaborative value engineering has helped deliver a world class product that is used by some of the world’s most prestigious manufacturers.
Tony Hague, CEO of PP C&A recognises that this kind of collaboration is text book:
“If you are going to write a book about strategic outsourcing and how it can work for machine builders, I’d like to think this relationship would be in the case study section.”
Strategic outsourcing partnerships empower machine builders and OEMs to operate more efficiently and seize growth opportunities with reduced risk. Providers like PP C&A must demonstrate the requisite capabilities and attributes to earn trust and foster successful collaborations.
By aligning with trusted outsourcing partners, machine builders and OEMs can optimise their operations, drive innovation, and position themselves for sustained growth in an ever-evolving marketplace. PP C&A invites stakeholders to explore the potential benefits of outsourcing and evaluate whether it could catalyse similar transformative outcomes for their operations, as evidenced by the success stories highlighted herein and numerous others documented here and below.
A leading aquaculture specialist – that is changing the way fish are vaccinated safely – has signed a major manufacturing deal.
Explore how PP Control & Automation helps machine builders and OEMs solve real operational challenges through strategic outsourcing.
One of the hospitality sector’s most significant innovations has been given a production boost thanks to the scale and outsourcing capability of PP Control & Automation.
Unique technology born in the heart of Oxfordshire is helping protect millions of electronic devices across the world and its impact is set to grow even further over the next eighteen months.
The way companies access inventory management is changing rapidly and leading the charge is Solihull-based Inventor-e.
PP Control & Automation and Hedinn are now engaged in their 13th project together and the largest yet, the construction of a new plant for Sildarvinnslan.
Play an interactive video with hotpoints that delve into the story behind the manufacturing partnership with Needham Group and the assembly of its N-Lase range of products.
A strategic manufacturing outsourcing partnership – built on trust, integrity and maximising each other’s production expertise – is celebrating ten years together with the launch of the world’s most productive EDM drilling machine.
This collection of case studies examines some of the recent strategic outsourcing partnerships delivering against several business pains for machine builders and OEMs, and how those partners are benefiting from the PP C&A approach.
Turning to the strategic manufacturing outsourcing expertise of PP Control & Automation could prove to be a pivotal decision for Needham Group as it aims to turn a £30m expansion blueprint into reality.
Assuming you have correctly identified the areas suitable for outsourcing, the single biggest threat is selecting the wrong partner.
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